A Montreal-based startup has launched a new app designed to encourage young Canadians to save money by turning the process into a game.
Benjamin Thomas, 23, co-founder and CEO of Lodavo, said the app, released on major app stores last week, rewards users with entries into weekly prize draws based on how much they save.
“We saw that a lot of students and peers struggled with saving money, even though all of us knew that it was important,” Thomas told Global News in an interview. “A lot of people didn’t actually take that concrete action and start building those habits.”
Thomas said the app is free to use and is aimed at making saving feel more engaging, particularly for younger users who may find traditional financial tools unappealing.
“A lot of the current saving products out there are very boring. They’re built for rich people,” he said.
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The platform uses a rewards-based system, where users earn entries into draws as they build savings. Even if they don’t win, Thomas said, they still benefit by setting money aside.
Noticing how many young people are getting hooked on online gambling, the idea draws on behavioral trends around risk and rewards. Thomas pointed to data suggesting many Canadians are drawn to lotteries despite lacking basic savings.
“Twenty-five per cent of Canadians don’t have $500 saved up for an unexpected expense, while over about 50 per cent of Canadians will play the lottery each year,” he said.
The twenty-three year old said he developed the idea while studying finance at Concordia University’s John Molson School of Business, later adding a computer science minor to help build the technology behind the app.
“I’ve always been a huge personal finance nerd,” he said, adding he wanted to create something accessible even for those without that interest.
Before launching, the startup built a waitlist of more than 1,000 Canadians without paid advertising, and has begun early discussions with financial industry players like Wealth Simple about potential partnerships.
Thomas said the app also aims to address what he sees as a broader hesitation among young people to engage with finances.
“It can always seem really daunting at the start, but just taking those first few steps can help a lot and have a huge return in the long term,” he said.
The company says it is now focused on growing its user base and refining the platform based on feedback from early adopters.